Author Archives: kevinonthestreet

ETFs as part of the credit liquidity story

Liquidity in the corporate bond market is tough.  We’ve written about it time and time again.  At a high level we see two solutions.  One, inject new electronic trading tools and liquidity providers into the existing corporate bond market to better match buyers and sellers (a theme discussed in our 2014 European Fixed Income Study).  Two,… Read More »

Increased Cloud Adoption Should be a No-Brainer for Hedge Funds

Its been a while since I’ve written a real techy piece, so had a fun time with this one.  While it might seem a bit out of left field given a recent focus on fixed income market structure, it is in fact the growth of structured derivatives trading that is making the use case for… Read More »

Package trade rules – can they do that?

On Thursday May 1 the CFTC released an eagerly awaited clarifying document outlining when and how package trades would be required on SEF.  Packaged transactions will be phased in by type from May 15th through November 15th, and to deal with the pre-trade credit checking issue (checking limits against each leg as opposed to the limit utilization… Read More »

FX volumes are down, but its more than just economics

First some admin notes.  We’ve recently created an official Greenwich Associates market structure blog.  The goal was to create a seamless method for us to get new research and commentary out to the market.  The market structure commentary I’ve been posting here at Kevin on the Street will mostly all end up on the new… Read More »

FX Markets are Ready for a Shake-up

The biggest finding in our latest report on FX electronic trading was nothing.  Our 1500+ interviews with global FX users showed continued growth in electronic trading (74% of users trade FX on the screen), growth in execution algorithm usage (expecting 65% growth in 2014) and high hedge fund use of the two.  But those data… Read More »

Setting FX Benchmarks with Observable Data – My Interview with CCTV America

For a market that is so electronic, using observable data to set benchmark rates shouldn’t be much of a stretch.  About two weeks ago I did a taped interview for Central China TV (CCTV)  America to discuss this an the electronification of FX more generally.  The interview includes my attempt at explaining electronic trading in… Read More »

What is Market Structure, And Why You Should Care

If you work in institutional finance you’ve heard talk of market structure. Not only are there entire conferences dedicated to the topic, but most of the participants at those conferences— banks, asset managers, researchers—send their heads of market structure to speak. Commonly used in economics to describe the interconnectedness of and interaction between the buyers… Read More »

The US Invasion of European Fixed Income

Capital is expensive and getting more expensive.  But the problem is proving a much harder one to manage in Europe, with European banks continuing to deleverage and already complying with the principles of Basel III while US banks have their capital houses (relatively) in order.  The impact of this dichotomy is broad, but one impact… Read More »